Estimated reading time: 2 minutes, 8 seconds
This episode of Blockchain Token – What is it? features NEM!
NEM is a cryptocurrency and platform that was built from the ground up to solve for problems that existing cryptocurrencies are experiencing. They value financial freedom, decentralization, and equality of opportunity.
NEM is short for New Economic Movement. They are based in Japan and first launched in 2015. NEM is the name of the platform, while the token is referred to as XEM.
Their focus is on scalability and speed, which keeps transaction fees low. NEM is capable of 3000 transactions per second, and it takes only about 6 seconds for a transaction to show up in a wallet; 20 seconds for confirmation.
In addition to their public blockchain, they also offer a private, ready-to-use solution for businesses. Easy integration with a company’s existing networks is possible through APIs, so specialized programming knowledge is not needed to get your company on the blockchain.
NEM uses smart assets, which are similar to smart contracts, but are deployed off-chain. Benefits of this include higher security and faster execution times at the expense of decentralization. Smart Assets can be configured to handle almost anything from financial transactions to supply chains, ownership records, and even crowdfunding.
The most interesting part of NEM is its Proof of Importance system. This is what they use instead of a Proof-of-Work or Proof-of-Stake system. Users get a Proof of Importance score based on how much XEM they hold and how much they use. Accounts with smaller amounts held will have a comparable score to larger accounts, plus there is a maximum Proof of Importance score that will prevent larger accounts from taking over. Using your XEM will allow you to increase your Proof of Importance score. A higher score will give you a higher chance to harvest a block. Sores are used for voting and preventing spam.
If you are curious about some price action with NEM, check out Finding NEM-O: 3 NEM Price Predictions For 2018 & Beyond!
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